Dear All, In overtime calculation, on which basis we should calculate - wages/26 or wages/30. under which section it has defined. I need a calculation details as per act. please assist. Thank you
From India, Chennai
Acknowledge(0)
Amend(0)
1From India, Chennai
Acknowledge(0)Amend(0)
To quote the section under the Act, we need clarification on whether you are registered under the Factories Act or the Shops and Establishments Act!
Where any person employed in any establishment or factory is required to work overtime, they shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.
The ordinary rate of wages for daily rated workmen is the per-day wages, based on a 26 working day calculation. For monthly rated workmen, it is the per-day wages divided by the number of days in a month.
From India, Madras
Acknowledge(0)Amend(0)
Where any person employed in any establishment or factory is required to work overtime, they shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.
The ordinary rate of wages for daily rated workmen is the per-day wages, based on a 26 working day calculation. For monthly rated workmen, it is the per-day wages divided by the number of days in a month.
From India, Madras
Acknowledge(0)Amend(0)
Dear Babu Sir,
Thank you for your prompt response. We have registered under the Factories Act. Currently, we are calculating wages as wages/26 (for monthly salary) and we are proposing to change it to wages/30. However, our management is asking us where exactly it is stated in the act book and under which section. Kindly assist me.
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)
Thank you for your prompt response. We have registered under the Factories Act. Currently, we are calculating wages as wages/26 (for monthly salary) and we are proposing to change it to wages/30. However, our management is asking us where exactly it is stated in the act book and under which section. Kindly assist me.
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)
Dear Mohan,
I would like to request you to go through the provisions of Section 52 of the Factories Act, 1948, which provides for weekly holidays for adult workers employed in a factory. In essence, you cannot require any worker to work for all 30 days without any weekly holiday or compensatory holiday in lieu thereof.
From India, Salem
Acknowledge(0)Amend(0)
I would like to request you to go through the provisions of Section 52 of the Factories Act, 1948, which provides for weekly holidays for adult workers employed in a factory. In essence, you cannot require any worker to work for all 30 days without any weekly holiday or compensatory holiday in lieu thereof.
From India, Salem
Acknowledge(0)Amend(0)
I appreciate the respected Mr. M. Umakanthan's prompt reply. Besides the above, I would also like to add that Mr. Mohan may refer to the Tamil Nadu minimum wages notification, wherein it is clearly mentioned the per day wages. Wherever monthly wages are shown, the definition clause explains that to arrive at per day wages, the monthly wages should be divided by 26 days, not 30 days.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Umakanthan Sir and Babu Sir,
Thank you for your prompt response. Actually, what I am exactly looking for is under which section the formula for overtime has been mentioned in the act book. Section 52 gives details related to working days and holidays, but I am searching for the formula in the act book.
Thank you
From India, Chennai
Acknowledge(0)Amend(0)
Thank you for your prompt response. Actually, what I am exactly looking for is under which section the formula for overtime has been mentioned in the act book. Section 52 gives details related to working days and holidays, but I am searching for the formula in the act book.
Thank you
From India, Chennai
Acknowledge(0)Amend(0)
Dear Mohan,
Sec-59 of the Factories Act states about Extra wages for overtime. There are two provisions - Where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week, they shall be eligible for OT payment at the rate twice their ordinary rate of wages.
There are 2 possibilities - if a worker works for all 6 days in a week, 9 hrs per day, then they will be entitled to 6 hrs OT at the rate twice their ordinary rate of wages. Therefore, the total hours of payment will be 48 + 6 x 2 = 60 hrs.
Another case may be if a worker works for 5 days in a week, of which 3 days are 9 hrs and 2 days are 10 hrs, then the OT calculation will be 5 x 8 = 40 hrs normal + 3 days 9 hrs = 3 hrs single OT and 2 days 10 hrs = 2 hours single OT and 2 hours double OT. Therefore, the total hours of payment will be 40 + 3 + 2 + 2 x 2 = 49 hours.
Thanks & Regards, S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
Acknowledge(0)Amend(0)
Sec-59 of the Factories Act states about Extra wages for overtime. There are two provisions - Where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week, they shall be eligible for OT payment at the rate twice their ordinary rate of wages.
There are 2 possibilities - if a worker works for all 6 days in a week, 9 hrs per day, then they will be entitled to 6 hrs OT at the rate twice their ordinary rate of wages. Therefore, the total hours of payment will be 48 + 6 x 2 = 60 hrs.
Another case may be if a worker works for 5 days in a week, of which 3 days are 9 hrs and 2 days are 10 hrs, then the OT calculation will be 5 x 8 = 40 hrs normal + 3 days 9 hrs = 3 hrs single OT and 2 days 10 hrs = 2 hours single OT and 2 hours double OT. Therefore, the total hours of payment will be 40 + 3 + 2 + 2 x 2 = 49 hours.
Thanks & Regards, S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear All,
In overtime calculation, on which basis should we calculate - wages/26 or wages/30? Under which section is this defined? I need detailed calculations as per the act. We are registered under the Shop and Establishment Act. Also, is there a difference between the state of Tamil Nadu and the state of Maharashtra in this regard? Please assist.
Thank you
From India, Madras
Acknowledge(0)Amend(0)
In overtime calculation, on which basis should we calculate - wages/26 or wages/30? Under which section is this defined? I need detailed calculations as per the act. We are registered under the Shop and Establishment Act. Also, is there a difference between the state of Tamil Nadu and the state of Maharashtra in this regard? Please assist.
Thank you
From India, Madras
Acknowledge(0)Amend(0)
Dear Umakanthan.M Sir,
As per the provisions of Sec. 52 of the Factories Act, 1948, which provides for weekly holidays for adult workers employed in a factory, I agree that we cannot require any worker to work for all the 30 days without any weekly holiday or compensatory holiday in lieu thereof.
But, Sir, we are paying a salary to all employees for the weekly off (including Sunday). In such a case, we should not calculate the daily rate of wages (for OT) by dividing 30 or 31 instead of 26. I would like to hear your opinion on this.
Regards,
From United States ,
Acknowledge(0)Amend(0)
As per the provisions of Sec. 52 of the Factories Act, 1948, which provides for weekly holidays for adult workers employed in a factory, I agree that we cannot require any worker to work for all the 30 days without any weekly holiday or compensatory holiday in lieu thereof.
But, Sir, we are paying a salary to all employees for the weekly off (including Sunday). In such a case, we should not calculate the daily rate of wages (for OT) by dividing 30 or 31 instead of 26. I would like to hear your opinion on this.
Regards,
From United States ,
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Overtime calculation- weekly hours of work.PDF
SALARY SHEET CALCULATION.xls